Top RI Entrepreneur Posner Criticizes RI Commerce's $3.3M to eMoney

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Top RI Entrepreneur Posner Criticizes RI Commerce's $3.3M to eMoney

One of Rhode Island's top homegrown entrepreneurs issued a critical statement regarding RI Commerce's deal with eMoney Advisors. Posner has launched Capital Good Fund - one of the most innovate companies. The company says it works to provide the "best financial empowerment organization in America by providing high-quality, innovative and transformational financial services to underserved families." 

Posner said about the $3.3 million in subsidies:

eMoney Advisor is looking to open an office in downtown Providence to create "up to" 100 jobs and is seeking $3.3 million in tax credits from the state.

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Let's see, that's $33,000 per job created. Capital Good Fund is creating 10 jobs in Rhode Island this year and is seeking $0 in tax credits.

Sure, the other jobs are probably higher-paying, but we are also hiring un and under-employed folks from the community. If the EMoney jobs go to people who are already employed, then the net benefit to the state is not zero, but, if you factor in the cost of the tax credits, negative.

Add to that the fact that these promises of jobs ("up to" is the operative phrase) rarely come to fruition, and the only conclusion is that this is an awful, terrible, no-good approach to job creation.

About Andrew Posner, Founder & Chief Executive Officer

Andy Posner founded Capital Good Fund while getting his Master of Arts in Environmental Studies at Brown University, where he was studying financing mechanisms for clean energy. After reading Banker to the Poor by Dr. Muhammad Yunus, the 'Father of Microfinance' and Founder of Grameen Bank, he quickly realized that equitable financial services could unlock the potential of the poor just as they could do the same for clean energy technologies. At the same time, as the financial crisis of 2008 began to unravel the economy and devastate low-income communities, Andy decided to take action. He created Capital Good Fund with an eye toward using financial services to tackle endemic poverty, first in Rhode Island, and then nationwide.


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